Trump White Home linked to home terrorists previous to the Capitol assault

The Trump White House was not very covert about its contacts with the insurgents who attacked the Capitol.
Media Matters has discovered a new video:

In a newly discovered video from a “Stop the Steal” rally in Arizona on December 19, organizer Ali Alexander bragged about being “on the phone” with “White House people” and appeared to be physical violence against members of Congress and other politicians to promote Whoever he claimed was helping “steal” the election. This rally took place just weeks before the Capitol rising.

At the same rally, Alexander appeared to have been advocating physical attacks against members of Congress who he said helped “steal” the elections, calling this a “moral obligation”.

Trump’s White House knew about the insurgents. The fact that they had contact with them before January 6th is an indication that Donald Trump knew what he was doing when he asked the crowd to march on the Capitol. The attack was Trump’s last attempt to use force to stay in power.

Alexander’s statements were intended to serve as evidence against Trump in his second impeachment trial. It seems that Trump’s White House didn’t just instigate the uprising. They seem to have encouraged and fanned the flames until a crowd already prepared for violence stormed the Capitol.

For more discussions on this story, join our Rachel Maddow and MSNBC groups.

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Mr. Easley is the Founder / Executive Editor, White House Press Pool, and a Congressional Correspondent for PoliticusUSA. Jason has a bachelor’s degree in political science. His thesis focused on public order with a specialization in social reform movements.

Awards and professional memberships

Member of the Society of Professional Journalists and the American Political Science Association

Dow falls greater than 500 factors on Friday, struggling its worst week since October amid the GameStop buying and selling frenzy

US stocks fell sharply on Friday, ending a rollercoaster week on Wall Street as retail speculative trading continued to unsettle the market.

The Dow Jones Industrial average fell 620.74 points, or 2%, to 29,982.62, the first time since December 14 that the 30-share mark closed below the 30,000 mark. The S&P 500 fell 1.9% to 3,714.24 as 10 sectors posted losses. The Nasdaq Composite was down 2% to 13,070.69 as Apple fell 3.7% and other big tech names slid.

All three major averages fell more than 3% this week, recording their worst week since October. In January the blue chip Dow and S&P 500 fell 2% and 1.1% respectively, and suffered their first negative month in four years. The tech-heavy Nasdaq achieved a month-on-month gain of 1.4%.

GameStop’s shares rose 67.9% after Robinhood announced it would limit purchases of the stock and other heavily abbreviated names after restricting access the previous day. Robinhood raised more than $ 1 billion overnight from its existing investors, in addition to leveraging the banks’ lines of credit to ensure the capital was there to start trading volatile stocks like GameStop again.

Investors are concerned that if GameStop continues to rise in such volatility, it could penetrate financial markets and cause losses at brokers like Robinhood and force hedge funds that bet against the stock to sell other stocks to raise cash.

There are also fears that the GameStop mania is a sign of a bigger bubble in the market, and that its dissolution could also create turmoil and hit retail investors hard. A number of lawmakers also called for an investigation into the chaotic trade. The Securities and Exchange Commission announced on Friday that it will review the regulated agency’s actions to see if the decisions have affected disadvantaged investors.

“There is far too much leverage in the system and we are beginning to see signs that this excess leverage is being handled in a way that creates headwinds for the stock market and other risk-weighted assets for more than a few days.” “said Matt Maley, chief marketing strategist at Miller Tobacco.

Meanwhile, new trial results of Johnson & Johnson’s coronavirus vaccine disappointed some investors as it was less effective with some variants and also hurt market sentiment.

J&J said its single-dose vaccine had shown an overall 66% effectiveness in protecting against Covid-19. The vaccine was 72% effective in the US, 66% in Latin America, and 57% in South Africa at four weeks. However, the vaccine provided full protection against hospital stays related to Covid. JNJ’s shares were down 3.6%.

Stocks had rebounded to hit record highs in hopes that vaccines against Covid would be effective to allow for a smooth economic reopening before the end of the year. New mutations that are more resistant to vaccines could improve the bright outlook for investors.

Volatility increased this week as the retail frenzy kept Wall Street on the sidelines. The Dow lost more than 600 points on Wednesday and suffered its worst sell-off in three months. Then the blue chip benchmark rallied 300 points on Thursday amid a broad market rally. The Cboe Volatility Index, known as VIX, jumped above 33 on Friday.

The market also saw its highest trading volume in years as the mania heated up. On Wednesday, the total market volume reached more than 23.7 billion shares, surpassing the level at the height of the financial crisis in 2008. On Thursday, there was also extremely strong trading with more than 19 billion shares that changed hands.

A wave of retailers motivated each other on the red-hot WallStreetBets Reddit forum to pile into the most hated names of hedge funds, resulting in massive short-bruising of stocks. GameStop is up more than 1,600% in January, while AMC Entertainment is up over 500% this month.

Billionaire investor Bill Gross was alarmed by the growing speculative mania this week in his investment outlook released on Friday.

“This apparent burgeoning crisis calls for regulatory and mainstream media warnings of the dangers this week, both for overall markets and for individual investors,” wrote Gross.

However, some believe that the overall market impact should be limited for now, as retail volume is concentrated on just a handful of names.

“While we believe there will be more pain, we remain optimistic that it will likely stay local,” said Maneesh Deshpande, head of equity derivatives strategy at Barclays. “Long-short hedge funds have relatively little market exposure, which indicates little impact on the overall market due to deleveraging.”

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Ari Fletcher is setting the report proper now after followers assumed she solid JT Of The Metropolis Women shadow after Smug Tae did her hair

Ari Fletcher

Roommate, Ari Fletcher is no stranger to being in the middle of celebrity beef … and her most recent incident surrounds JT of the City Girls. After famous hairdresser Arrogant Tae posted photos of JT’s hair that he had styled, Ari left a comment under the photo, which many found an extreme shadow – but she just cleared up the rumors.

While there are a ton of celebrity hairdressers out there, many of the new school’s social media influencers, IG models, and rappers use the same small circle of which Arrogant Tae is the ring’s leader. Ari Fletcher has been known in the past for being quite territorial when it comes to Tae doing other people’s hair besides hers – which is why her recent Instagram comment rubbed many wrong.

After Tae posted the photos of JT’s hair that he recently killed, Ari commented below the photo, “I wish you had put so much energy into my hair for my big day.”

It didn’t take long for the comment to go viral, causing Ari to hop on Twitter, clearing the air, claiming she didn’t delete it after the backlash:

“I didn’t delete s ** t Tae from my son because he didn’t want to see you doing a ** dirty. I try to share and conquer myself and my b ** ch JT. You will go to hell. “

In the meantime, JT has never commented publicly on the whole drama, and since it seems like everything is going well between her and Ari, she may not have to.

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GameStop merchants might power hedge funds to vary their funding ways

Traders work on the trading floor of the New York Stock Exchange.

NYSE

Retail investors have outsmarted smart money, and the war between Reddit merchants and hedge funds seems to have left an indelible mark on Wall Street.

For large investors or hedge funds short of individual stocks, some of those positions have been besieged by a large cohort of small investors, many of whom use a Reddit forum.

The idea of ​​a short is that the holder of the position makes money when the stock price falls, but when it rises investors have to buy the stock themselves, and all of this activity can push the price even higher, resulting in a short push. GameStop was the flagship of this trade, and when investors bought the covered stocks and shorts it hit $ 483 on Wednesday. It gained 400% in the last week alone, closing at $ 325 on Friday after a week of volatile trading.

After the midweek high, the stock moved in the opposite direction. Its high was more than halved on Thursday afternoon and it closed at $ 193.60, a 44% decline. This caused pain for investors who bought in at higher levels and wanted to get out or were forced. But on Friday it resumed its upward trend.

Leo Grohowski, CIO at BNY Mellon Wealth Management, said the hedge funds were disruptors on Wall Street 30 years ago, but now they are being disrupted.

“There’s a lot going on in what’s going on. I don’t think it’s a one-time bias,” he said.

Rich Repetto, senior research analyst at Piper Sandler, said the movement of investors using social media forums and online trading was similar to the impact Covid had on the workplace when employees were working from home. The trading phenomenon has increased and accelerated during the pandemic as people are stuck in their homes. As with working from home, many will eventually go back to their old routines, but some changes are permanent.

“We have different behavior now. Will the trade be that high?” Said Repetto. “Maybe not, but we’re not going back to 2019. We have a whole new generation that was brought to market through apps.”

Wall Street has seen some impact as well. For one, Citron Research announced on Friday that it will no longer publish research information on its short positions, ending a 20-year practice.

GameStop isn’t just an investor favorite on the WallStreetBets Reddit forum. Investors have bought dozens of nicknames, including Blackberry, Nokia, and Koss. AMC Entertainment is another company that fell 50% on Thursday but fell 54% to $ 13.26 on Friday. Short stocks fell Thursday after Robinhood, Interactive Brokers, and others restricted trading and increased margin requirements on GameStop, AMC, and other heavily truncated names.

Brokers clear deals through a clearinghouse that could look for more capital for the quick deals coming from small investors. Brokers who are not capitalized well enough could suffer huge losses if investors are suddenly wiped out.

Robinhood CEO Vlad Tenev told CNBC that his company restricted trading of 13 stocks on Wednesday as part of an internal decision to manage operational risk to protect the company and its investors. He said the decision was made based in part on the SEC’s net capital rules and clearinghouse deposits that brokers are required to adhere to.

The temporary moves taken by the brokers angered investors and received criticism from far and wide by lawmakers, including a rare deal between Rep. Alexandria Cascio-Ortez, DN.Y. and GOP Senator Ted Cruz from Texas. Robinhood raised $ 1 billion from investors overnight, in addition to $ 500 million drawn through lines of credit for trading stocks like GameStop. Tenev said the move is proactive and not because of liquidity issues.

“This has been an unprecedented activity focused on a select few names, and it really is the first time I’ve seen where social media and financial services have overlapped in this way,” Tenev said on CNBC Thursday evening.

Some market pros also expect events to shed new light on short trading, a long-standing Wall Street strategy, but critics point out how it targeted companies whose businesses have been damaged by Covid.

This week’s frenzied trading resulted in billions of stocks switching hands, and it could change the dynamics of the stock market as well. Market professionals say hedge funds could be cautious about putting on shorts and instead create positions in the options market that would take on the role of short.

Individual investors have grown to around 20% of the market since their youth as retail has soared during the pandemic. The fee-free trading offered by Robinhood and other online brokers has fueled the trend, as has a stock market that has risen virtually significantly since the March low.

“I think the big picture at 40,000 feet is that this opens up retail. Whether sustainable or not, retail is driving valuation of certain stocks,” Repetto said. “I think the increased retail activity will stay here at some level.”

Repetto said the trend should benefit online brokers like Robinhood, TD Ameritrade and Schwab. The impact on hedge funds is still unclear.

“I have had no question in the past few days that hedge funds were doing a small risk assessment and reviewing their short positions to see if they had stocks with high short positions that could potentially be impacted by social media,” she said Repetto said.

But the phenomenon of a mass of small traders working together could transform the market. Dan Deming, managing director of KKM Financial, said retail investors have managed to find inefficiency in the market and move forward en masse.

“Some of the longer-term strategies that have worked for a long time are now being challenged, at least in the short term,” Deming said. He expects hedge funds to replace some strategies with options trading.

“To some extent, the population of the market is evolving and it is again a combination of technology that meets a need and finds a home in the investment community,” said Deming. “Market participants feel a little more encouraged than they used to be in getting in and out of positions. Information is on a much more even playing field. It seems like investors become traders to some extent.”

Steve Massocca, CEO of Wedbush, said Reddit investors had come across a winning strategy and he found some of the names they invested in were good stocks.

“We found Tootsie Roll ridiculously cheap and a well-run business. Some of those names have been massively undervalued,” he said. “Not GameStop, but other names that the Reddit folks were looking for that had big shorts, buying stocks that we thought were great value. Tanger Factory Outlets was fined terribly for Covid, but the deal is actually not bad. “

Massocca said his firm’s quantitative analysis two years ago showed that betting against shorts would be the wrong trade. It wasn’t great a year ago, but he found that things have changed in the past six months. He bought into shorted B&G Foods, owners of Green Giant, Accent and Ortega, and sold it when it came out in the mid-30s. It was down 8.6% to $ 37.51 on Thursday.

The short squeeze in hedge funds resulted in some selling of long positions on Wednesday, which helped to drive the market sharply lower. But it bounced back on Thursday and the Dow rose nearly 350 points. Stocks went down Friday morning as some of the short names rose.

Evercore technical analyst Richard Ross said Thursday he did not expect any impact on the broader market, although GameStop trading also hit the SPDR S&P Retail ETF XRT, causing the ETF to become volatile.

“The bullish backdrop for stocks is strong, intact, and so much bigger than GME. If the latter stops rising, the former will not fall and the massive early reversal of XRT and GME against the most overbought values ​​in history for the ETF ,” he wrote.

BNY Mellon’s Grohowski points out other examples of disorders such as: B. Carpooling and home rentals.

“It is thought-provoking that the very stable financial market participation might change,” he said. “We’re going to talk about the profitability of long-short managers. This is a wake-up call to liquidity, profitability, and it’s all in our dictionary this week and we weren’t expecting it.”

Moderna is asking the FDA to permit 5 extra doses per Covid vaccine bottle to expedite distribution, the supply informed CNBC

A health care worker holds a vial of the Moderna COVID-19 vaccine at a pop-up vaccination station operated by SOMOS Community Care during the coronavirus disease (COVID-19) pandemic in New York on January 29, 2021 .

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Moderna has asked the U.S. Food and Drug Administration for permission to fill their Covid-19 vaccine bottles with up to five additional doses to help clear a manufacturing bottleneck, according to a person familiar with the matter.

The change would allow Moderna to fill 15 cans into equal-sized vials, which are now cleared for 10 cans, reducing the pressure on the manufacturing process known as fill / finish, said the person who refused to be named because the application was not made. not yet public.

The availability of Covid-19 vaccines has caused frustration since their approval in the US in mid-December. While the pace of administration has increased to more than a million a day on average, limited supplies have hampered states’ ability to operate mass vaccination centers. By Friday, the US had distributed 49.2 million doses and 27.9 million had been given, according to the Centers for Disease Control and Prevention.

“We have problems making these mRNA vaccines,” said Dr. Paul Offit, director of the Vaccine Education Center and a physician at Philadelphia Children’s Hospital. “We have up to 1.2 million doses a day when we need 3 million doses a day.”

The FDA declined to comment and asked questions to the company. Moderna did not immediately respond to a request for comment.

The switch from Moderna came after Pfizer requested and received a change from the FDA to its emergency clearance to state that the Covid-19 vaccine bottles contain six doses instead of five after pharmacists found a bonus dose extracted with the correct syringes could be. Pfizer then said it would ship fewer vials to the US, but the same number of doses specified in its contracts.

Moderna vials have also been found to contain a bonus dose, but a policy change is being sought to add volume to the vials.

The bottleneck is not the vials themselves, so the familiar; It is the production capacity to fill the vials. The manufacturing filling / finishing process must be performed under aseptic conditions to ensure contamination does not occur and the capacity is high.

Companies have begun to form manufacturing partnerships that focus on this step in the process to increase production. On Friday, Novartis announced that it had signed an initial vial fill agreement for BioNTech, Pfizer’s partner in Europe, for the Covid-19 vaccine.

“We expect this to be the first in a series of such agreements,” said Steffen Lang, head of technical operations at Novartis.

Go behind the scenes at certainly one of Bridgerton’s lavish balls

Are you passionate about more Bridgerton content? Well then, dear reader, we have good news for you.

On Friday, January 29th, Netflix posted a behind the scenes video documenting how to prepare for a Bridgerton Ball. The video follows Stern Nicola Coughlan when she transforms into Penelope Featherington and plays the set of the Netflix love drama.

“So we shot a lot of locations,” says Nicola in the new footage below. “We shot a lot in Bath. So, you get picked up at four in the morning, you are driven in the dark, you wake up, you are in a mansion. You say, ‘Ah, this is amazing!'”

However, the Derry Girls actress reveals that she doesn’t remember any of the specific filming locations. She quips, “Someone says, ‘Where have you been today?’ You say, “I don’t know. It was very nice.” “

On the way to hair and make-up, Nicola admits that she got lost “several times” on set. What’s even more surprising? Nicolas’ transformation into Penelope lasts two hours.

Toys R Us’s final two shops within the US are reportedly completely closed

The New Toys “R” Us Store opens at Garden State Plaza in Paramus, New Jersey.

Source: Tru Kids Brand

Toys R Us has reportedly closed the only two stores it still had.

The legendary toy retailer made the decision based on the troubles caused by the Covid pandemic and plans to shift resources to open new locations where there is better shopper traffic, Bloomberg said in a report on Friday afternoon.

A Toys R Us representative did not immediately respond to CNBC’s request for comment.

Tru Kids, a company that acquired the intellectual property of Toys R Us during its liquidation in 2018, opened two smaller stores in late 2019: one at Unibail-Rodamco-Westfield’s Garden State Plaza mall in Paramus, New Jersey, and a second in Simon Property Group’s Galleria in Houston.

Representatives from URW and Simon did not immediately respond to CNBC’s requests for comment.

Tru Kids still runs the Toys R Us website, which ultimately sends customers to Amazon to complete a purchase after marketing toys.

Many consumers have stayed away from brick and mortar stores during the pandemic and have instead bought more online. Retailers in shopping malls have suffered extraordinarily. It will likely take some time for shoppers to get used to returning to the malls, and a retail research firm predicts that up to 10,000 store closings could be announced by retailers in the US this year, which would set a new record.

Toy sales in the US rose 16% last year to $ 25.1 billion, market researcher The NPD Group reported on Monday as families turned to toys to keep children busy during the health crisis.

United Airways warns 1000’s of employees that their jobs are in danger

A United Airlines Boeing 737-800 and a United Airlines A320 Airbus approaching San Francisco International Airport, San Francisco.

Louis Ribbon | Reuters

According to United Airlines, the jobs of around 14,000 employees will be at risk if a second round of federal aid expires this spring. This is the latest sign of the industry struggling to regain a foothold in the coronavirus pandemic.

Companies are required by law to notify employees in advance if their jobs are at risk, and this does not mean they will ultimately lose their jobs. United is turning to new voluntary measures to reduce headcount.

United and American Airlines recently began calling back thousands of employees who were on leave when the first round of state payroll ran out in the fall. Congress approved additional aid to industry last year on condition that they recall workers on leave and keep payrolls by March 31. United told employees last year that the callbacks would likely be temporary.

“Despite continued efforts to distribute vaccines, customer demand has not changed significantly since these employees were recalled,” the airline said in an employee report seen Friday by CNBC. “When the callbacks began, United said most of the employees who were recalled would be returning to their previous status due to the fall break around April 1st.”

United involuntarily took around 13,000 employees on leave in the fall as the terms of the $ 25 billion Congress approved for U.S. airlines last year expired. The number of workers receiving WARN notices is higher as some workers also voluntarily take leave or enroll in other optional programs.

Hawaiian Airlines flight attendants also receive vacation notifications, according to the Association of Flight Attendants-CWA.

The AFA and the Association of Professional Flight Attendants, American Airlines’ flight attendants union, wrote to President Joe Biden and the congressional officials on Friday asking them to extend airline payroll support until September 30th.

“Without immediate action in this area, key workers will again find themselves faced with incredible uncertainty as jobs will be lost and the cost of the job the airlines will be starting in the coming days will be reduced,” wrote AFA President Sara Nelson and APFA – President Julie Hedrick.

American Airlines cut around 19,000 jobs in the fall after the payroll had expired. The airline did not immediately comment on whether it would also send notifications about possible job cuts in the spring.

“If demand has not gotten much better by then … we will definitely have to address this if demand does not pick up,” said CEO Doug Parker on a call for earnings on Thursday. “We are already talking to our unions about things we can possibly do.”

The SEC is reviewing the GameStop frenzy and guarantees to guard non-public traders

The US Securities and Exchange Commission in Washington, DC

Adam Jeffery | CNBC

The Securities and Exchange Commission announced on Friday that it will help protect investors by reviewing recent trading volatility that has caused stocks like GameStop and AMC Entertainment to soar.

In a statement, the country’s top financial regulator pledged to protect individual traders and to examine measures taken by brokers that “could disadvantage investors or otherwise unduly hinder their ability to trade certain securities”.

“We will act to protect retail investors when the facts show abusive or manipulative trading activity that is prohibited by federal securities laws,” the SEC said.

“The Commission is working closely with our regulatory partners, both in government and at FINRA and other self-regulatory organizations, including exchanges, to ensure that regulated companies meet their obligations to protect investors and identify and prosecute potential misconduct.”

The explanation came as sharply shortened, soaring stocks rose again during Friday’s session. Video game retailer GameStop, theater operator AMC and headphone maker Koss were up 50%, 53% and 43%, respectively.

The SEC’s promise to curb brokerage deals that may have “unduly” restricted customers’ tradability is good news for members of WallStreetBets Reddit and other retailers who sparked the rally.

When asked if they were contacted by the SEC, the WallStreetBets site moderators said in a Twitter post on Friday that the regulator had not yet contacted.

By buying the sharply shortened stocks or their call options, retail investors have forced investors betting against the stocks known as short sellers to cover their positions by repurchasing stocks to avoid further losses.

If this happens on a massive scale, it is called a “short squeeze” and can lead to a dramatic, volatile rise in the share price.

Many individual traders took to Twitter and other social media platforms on Thursday to protest Robinhood’s decision to restrict access to certain stocks at the center of the controversy.

The high trading volume puts pressure on online brokers like Robinhood, who customers have to pay in cash when closing a position. The brokers also needed additional cash to provide their clearing facility with additional capital and to protect trading partners from excessive losses.

Robinhood later said it would allow limited purchases in GameStop and other volatile stocks on Friday.

For the week, GameStop is up 420%, Koss is up 1,800%, and AMC is up 280%.

The sharp swings in such stocks, as well as Robinhood’s decision to restrict trading, have drawn the ire of politicians on both sides of the political aisle.

Senator Elizabeth Warren told CNBC Thursday that she blamed the SEC’s failure to act for the days of flash of market speculation.

“We need an SEC that has clear rules for market manipulation and then has the backbone to enforce and enforce those rules,” said the Massachusetts Democrat. “To have a healthy stock market, you have to have a cop on the beat.”

A pedestrian walks past a GameStop Corp. store in Rome, Italy on Thursday, January 28, 2021.

Alessia Pierdomenico | Bloomberg | Getty Images

“That should be the SEC,” she added. “You have to step up and do your job.”

North Carolina MP Patrick McHenry, the senior Republican on the House Financial Services Committee, said Friday he was concerned about unequal access to capital markets.

I want to “make sure we don’t stop people from having additional access to markets and therefore leave them to activities like we’ve seen with GameStop and some other tradable stocks,” he said on Squawk Box.

“What I’m seeing here is this bigger case: average, everyday investors are excluded from the access that insiders like C-suite members get from corporations, and hedge funds and private equity get natural access,” he added. “And that the credit investor standard has turned our markets into an extremely prosperous lie.”

Why complaints about medical doctors fall regardless of a careworn system

The American healthcare system may buckle under the weight of the coronavirus pandemic, but one number is inexplicably falling.

Disciplinary measures against doctors fell sharply in the first nine months of 2020. The National Practitioner Data Bank, a federal registry of health professionals and institutions, has recorded 4,393 reports of adverse behavior against doctors. Compared to 5,225 reports over the same period in 2019, that’s a decrease of nearly 16%, the U.S. Department of Health told CNBC.

The total includes 3,752 actions taken by government approvals, compared to 4,521 in the same period in 2019. Also in 2020, through September, 641 doctors had their clinical privileges restricted or suspended, compared to 704 such actions in the same period in September Previous year.

The reasons for the decline are unclear. The pandemic forced widespread delays in non-Covid-19 litigation. In one study, more than 28 million elective surgeries were delayed or canceled in 2020. Patient advocates also point out the medical shortage during the pandemic, the crush of critically ill patients and patients, even the heroic status of the healthcare workers on the front lines of the crisis.

The president of the Federation of State Medical Boards denied that the shortage of doctors was a factor in states taking fewer measures against doctors over the past year.

“The guiding light, our north star, is the protection of the public,” said Dr. Humayun Chaudhry told USA Today in September. “It’s the facts of the complaint and the case. The problem of the workforce is not taken into account in individual cases.”

However, the decline in reports to the National Practitioner Data Bank almost certainly doesn’t mean the problem physicians’ problem is gone, patient safety experts say, despite extensive reforms in recent years.

“The mechanism is there. Indeed, it is required. And yet it does not work,” said Dr. Lucian Leape, Professor of Retired Health Policy at the Harvard School of Public Health.

Leape, whose 1994 publication “Error in Medicine” is widely recognized as revolutionizing the profession’s approach to medical errors, founded the Lucian Leape Institute, a think tank to improve patient safety.

Leape told CNBC’s American Greed that despite numerous safeguards – such as requiring incidents to be reported to the database and doctors being certified and assessed regularly – there are still too many incentives to maintain the status quo.

“Even if you get it right,” he said, “people fight back viciously because their livelihoods are at stake. And that’s a deterrent. Nobody wants to spend their time in court defending the fact that they’re doing this Guy asked to go. “

Activate ‘Dr. Death’

Leape is quick to point out that problem physicians are a tiny part of the profession. However, their effects can be catastrophic.

Neurosurgeon Christopher Duntsch, who came to be known as “Dr. Death,” was able to practice in at least four Texas hospitals over a period of three years, despite dozens of botched surgeries and two patient deaths. In 2017, a Texas judge sentenced 49-year-old Duntsch to life imprisonment for deliberately injuring an elderly person.

This photo from the Dallas County Jail shows Christopher Duntsch. A Texas jury found the neurosurgeon guilty on Tuesday, February 14, 2017 of mutilating patients who had turned to him for surgery to fix debilitating injuries.

Dallas County Jail via AP

This patient, 74-year-old Mary Efurd, became paraplegic after Duntsch botched her spinal surgery. Fellow surgeon Robert Henderson, who took care of Efurd after the incident, told American Greed that the complications were so severe that he wondered if Duntsch was really a doctor.

“I couldn’t imagine someone taking an anatomy class in medical school doing so much harm,” said Henderson.

In fact, Duntsch had an extensive and real resume, including a medical degree from the University of Tennessee at Memphis and a prestigious scholarship in spinal surgery.

Duntsch did not respond to several American Greed requests for comment.

Prosecutors said Duntsch was able to stay active for so long because of the many cracks in a system designed to root out bad doctors. Alleged safeguards include a requirement to report incidents to the National Practitioner Data Bank, which Congress set up specifically in 1986 to prevent problem doctors from moving from hospital to hospital.

Two days after a committee at Baylor Plano Hospital in Dallas found that Duntsch had violated his standard of care in two botched operations, Duntsch simply resigned instead of being discharged. A fire would have been reported to the database. There was no resignation.

The hospital has since changed its name to Baylor Scott and White. In a statement, spokeswoman Jennifer McDowell declined to go into details of the case.

“Dr. Duntsch, who began his career in North Texas with impressive references and excellent referrals, ended up hurting families, employees, and the trust we all have in doctors,” wrote McDowell. “Out of respect for the affected patients and families and the privilege of a number of details, we will continue to limit our comments. There is nothing more important to us than serving our community through high-quality, trustworthy healthcare.”

In another case, Dallas Medical Center granted Duntsch temporary privileges. He wasn’t hired. The reporting requirements for the database only apply to employees.

“Everyone knows when to get in touch, and no one likes to ruin someone’s reputation,” Michelle Shugart, the Dallas assistant district attorney who prosecuted Duntsch, told American Greed. “And so they are using these little techniques to find ways to avoid reporting someone.”

In a statement to American Greed, Dallas Medical Center spokesman Vince Falserella said the facility had been in new ownership since Duntsch’s time.

“The administration that existed at that time is no longer in the hospital,” he wrote. “Dallas Medical Center has a thorough physician certification process in place that meets all industry standards, best practices, and guidelines and regulations from the National Practitioner Data Bank to ensure the safety of our patients.”

Another hospital, the Legacy Surgical Center in Frisco, said it had changed hands since Duntsch began practicing there. The fourth, University General in Houston, has closed.

None of the hospitals have been charged with criminal misconduct. The Texas Department of Health fined Baylor Plano $ 100,000 for violating the state administrative code in 2014, but later overturned the finding without explanation.

Shugart believes some facilities were motivated by something more sinister than just avoiding the hassle of reporting a bad doctor.

“Neurosurgeons are one of the most lucrative aspects of the hospital business,” she said. “The financial incentives are a big part of what drives him and the people around him.”

Leape, the patient safety expert, said bad doctors don’t operate alone.

“These people have enablers,” he said. “This neurosurgeon didn’t take his patients out of thin air. Doctors refer patients. Neurosurgeons receive their patients from other doctors.”

Attention patient

To make matters worse, patients have few options to see a doctor in advance. The National Practitioner Database is confidential to the general public – you can find out the number of complaints, but not the doctors or institutions behind them.

For this reason, Leape believes it is important for patients who have had a bad experience with a doctor to report it.

“You need to make some noise,” he said. “You should go to the board of directors of the hospital and say, ‘You have to do something about this person’.”

Ultimately, Leape believes the rules need to be tightened. He prefers a federal patient safety agency with teeth to enforce standards and remove bad doctors, rather than the current patchwork of state regulators and hospital committees.

“We ask people to regulate their own profession and regulate themselves, and people just can’t,” he said.

Leape said hospitals – large chains in particular – have begun to prioritize patient safety. But he said that consciousness can only go so far.

“The systems are only as good as the people in them,” he said. “Systems work when people make them work.”

See how Christopher Duntsch got the nickname “Dr. Death” and how he got away with it for so long. Check out a NEW American Greed on Monday, February 1st at 10pm ET / PT on CNBC only.